International journal of management and economics
invention
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www.rajournals.in
“Strategies For Winning Customer In A Competitive Market
Environment” (A Case Study Of Mtn Nigeria Ltd)
Dr (Mrs) Ruth Haruna Wazis1, Dr Yagana Imam2, Abubakar Musa Gassol3
ABSTRACT: There is hardly any business organisation to successfully serve a particular market without experiencing any form
of competition in the market environment. Every firm must strive to develop effective and appropriate market strategies which
will enable it to create a dependable position against competition forces either by defensive or offensive action. The study is
set to assess how marketing strategies enhance company performance of MTN Nigeria Limited, Maiduguri. The research
used both primary and secondary data. Primary data were collected through administered questionnaires using simple
random sampling of fifty (220) respondents: out of which (190) were returned, data collected were analysed using simple
percentages and frequency tables. Chi-square tool of data of analysis was used to test the hypothesis raised in the study at
0.05of level of significance. The findings revealed that most customers of MTN Nigeria are not happy with the incentive
provided by MTN. Base on the findings, the researcher recommended that the management of MTN should make customer
care service very effective and extend their services to all part of the country in order to reduce congestion.
Key wards are; Consumer, Customer. Market Segmentation, Customer Satisfaction ,Touch Point
INTRODUCTION
There is hardly any business organization that is not faced
with some form of competition in his effort to serve a
particular customer market. Those business organizations
that persist and survive usually have some unique advantage
over all others. As they interact in the market place, each
firm tries to understand the strategies of the other and tries
to sidetrack them. Success in this situation depends on the
strength of the competitive analysis on which the strategy
would be developed on.
According to Porter (1980), each firm faces two types of
competitors, current and potential competitors. Current
competitors may be divided into two types. They are those
competitors who offer similar or who define their business
in a similar manner. They may serve almost the same
customer groups, seek to perform the same customer
functions, utilize similar technologies or exhibit similar
degree of vertical integration. The second type is those who
may define their business differently but interest each other
in the market place. Those differences may be in customer
group served, the customer function performed, the
technologies utilized and the degree of vertical integration.
Ordinarily, they may be perceived as indirect competitors.
It is very difficult for any business organization to
successfully serve a particular target market without
experiencing on form of competition or the other.
Therefore every firm must strive to develop effective and
appropriate competitive marketing strategies which will
enable it to create a dependable position against competitive
forces by either defensive or offensive action. In view of this
the research aims to find out the strategies being adopted by
MTN Nigeria to win customers in the competitive market
environment and to see the influence of those strategies on
the customer’s loyal for their product and service,therefore
the objectives of the research are;
i.
To assess how marketing strategy enhance
company performance.
ii. To examine the implication of competitor on the activity
of the company.
iii.To determine the challenges associated with planning
and executing of competitive marketing strategy.
iv. To assess the impact of the strategies on customer’s
demand for their product. The hypothesis formulated will
explain the condition for discovering the most appropriate
alternative through research findings.
H01: competitive strategies have no strong influence on
MTN customers.
H02: competitive strategies has strong influence on MTN
Custome
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It is obvious for a research such as this to have its
significant. So the study shall be useful to any business
organization that are choked and surrounded by competitors
in order to know the strategies to be adopted to prevail and
succeed in such environment without much stress. It will
also act as a guide that will determine the marketing
techniques or strategies requirements for the companies to
enhance their effectiveness.
The scope of the study will be limited to MTN service in
Maiduguri metropolis.
LITERATURE REVIEW
The concept of strategy is borrowed from the military and
adapted for use in business. In business as in the military,
strategy bridges the gap between end and means. Porter
(1998), says that corporate strategy is the pattern of decision
in a company that determines and reveals the objectives,
purpose or goal, producers the principal policies and plans
for achieving those goals and define the range of business
the company is to pursue the kind of economic and noneconomic contribution it intends to make to it’s
shareholders, employees, customers and communities.
For the purpose of this, marketing can be defined as a
process which identified consumer’s need and wants
through the conception of promotion, mutual exchange and
physical distribution of economic goods and services.
MTN, Glo, Airtel and other companies struggle for market
share with $9billion acquisition, over N300 billion loans,
and $800million undersea cable, the stage is now set for
the fiercest battle to control a dominant market share of
$12 billion cash flow and the160 million people.
The Nigerian telecommunications sector has come a long
way since 2001 when licenses were granted operators for the
Global System for Mobile Communication (GSM) services.
The sector has propelled Nigeria into a leading telecoms
nation ahead of South Africa with a subscriber base of over
70 million GSM users, and cumulative revenue of about $12
billion as at December 2009..When MTN and the then
Econet Wireless came on board in 2001, the environment
was non-competitive enough to ensure complacency that
was the era when GSM services were only for the privileged
few and service deliveries were anything but Owning a
phone then was a status symbol. A SIM pack was sold then
for a whopping N50,000 and even more. The environment
was sustained because GSM services were newly-introduced
and Nigerians were still euphoric over the fact that
communications could defy time, location, distance and
boundaries.
Today, telecom campaigns on the value proposition of their
brands such as Starcomms - "We speak your language"
phenomenon, MTN- "Everywhere you go" and Glo's "Glo
with pride"mega communications campaigns have given
way to incessant sales promotions particularly SMS induced
promos from both GSM and CDMA brands. Like a brand
analyst asked, where have the good old campaigns from
telecom gone? Instead of telecom brands focusing on
pricing, which has become a major debate in the industry,
almost all the brands have gone the way of making
Nigerians millionaires through unconvincing 'text4 million'
promotions in partnership with some reprehensible short
code service telecom companies to rip-off their innocent and
perhaps ignorant consumers.
In 2009 Glo initiated "Glo Text4 million promo" and was
subsequently followed by "Glo BID2WIN" promo, others
GSM companies joined the bandwagon as Airtel broke its
"Wake Up A Millionaire "promo. MTN joined the fray with
"MTN naira splash" promo to commemorate its Worlds Cup
in South Africa, an event it is a major sponsor. Apart from
Etisalat's "9jillions promo, which charges its subscribers just
N10 per SMS, MTN, Airtel and Glo 'TEXT4Million'
promotions all have one feature and that is N100 per SMS.
These promos have been tagged a rip-off not only by
analysts and activists but also by consumers. A new
dimension has been added and that is interactive version to
con innocent subscribers.
The condition governing telecommunication in Nigeria is
that of the Nigerian Communications Act 2003 and the
Competition Practices Regulations 2007, issued by the NCC
pursuant to the Communications Act, as well as specific
license conditions.
The act expressly prohibits any conduct that has the effect of
substantially lessening competition in any aspect of the
communications market. The NCC may determine that a
licensee is in a dominant position in any aspect of the
communications market. The act gives the NCC the right to
publish guidelines and regulations regarding how it will
apply the test of a dominant position to licensees, and the
NCC may direct a licensee in a dominant position to cease
conduct which has the effect of substantially lessening
competition.
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The provisions of the Investments and Securities Act 2007
are also relevant where a telecommunications sector merger
and/or acquisition arrangement is being considered. Section
118 of the act provides that every merger, acquisition or
business combination between or among companies shall be
subject to prior review and approval by the Securities and
Exchange Commission (SEC). The SEC rules define an
'acquisition' as "the takeover by one company of sufficient
shares in another company to give the acquiring company
control over the other company". The SEC will give its
approval only if it is satisfied that: (i) the acquisition is
unlikely to cause substantial restraint of competition or tend
to create a monopoly in any line of business; and (ii) the use
of such shares by voting or granting proxies or otherwise
shall not cause substantial restraint of competition or tend to
create a monopoly in any line of business enterprise
Table 2: Gender of Respondents.
Gender
Frequency
Percentage (%)
Male
123
64.8
Female
67
35.2
Total
190
100
Source: field 2016
From the above table, 190 respondents were interviewed.
123 were male while 67 were female resenting 64.8 and
35.2 percent respectively.
Table :3 Distribution
RESEARCH METHODOLOGY
The population for this research consists of consumers of
MTN Nigeria Limited Maiduguri Metropolis.The sample
size of 220 was randomly selected using simple random
sampling within Maiduguri Metropolis. Primary and
secondary data were uerd.
The data collected wasanalysed using statistical tools. Chisquare was used to test the hypothesis that were formulated
The analysis was based on the information collected through
distribution of questionnaires to customers of MTN Nigeria
limited.
Data presentation and discussion
Table 1: Questionnaire Distribution
Age interval
Frequency
Percentage(%)
16 years – 20
years
49
25.7
21 years -25
years
71
37.3
26 years – 35
years
34
17.8
36 years – 50
years
26
13,9
51 years –and
above
10
5.3
Total
190
100
Source: field 2016
Category
of
respondent
No. of questionnaire %
Sent
out
Returned
Returned
Not
returned
Customers
220
190
86.4
15.7
Source: Field Survey, 2016
The table above shows that (220) two hundred and twenty
copies of questionnaire were distributed out and (190) one
hundred and ninety were returned, representing 86.4%
returned and 15.7% unreturned.
From the above table, the age distribution of respondents
ranged between 16 years to 20 were 49 in number
representing 25.7 % while ages ranging from 21 to 25 years
were 71 signifying 37.3% this age range had the highest
number of respondents following by ages 37.3% with 34
respondents within this age interval representing 17.8% of
the sample population. Others were 26 for ages 36-50; 10
for ages 51 – and above, representing 5.3 percent
respectively
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Table 4: Educational Qualification.
Source : field 2016
The above table shows 92 people were student 68 people
were trader and 22 were civil servant while other are 8
Qualification
Frequency
Percentage(%)
Wassce/gce/neco
95
50
Diloma/nce/ond
62
32.6
Hnd/bsc/ba
28
14.7
Package
Above bsc
5
2.7
Family
friends
Total
190
100
Source: field 2016
Tale 4: shows the educational distribution of the customers
of MTN who responded to the questionnaire, 95 respondents
were ssce, gce and neco school certificate holders
respresenting 50% of sample population. Others were 62
respondents diploma holders, 28 respondents 1 stdegree
holders singnifying 2.7%
Table 5: Marital Status
Table 7: Tariff Plan of the Respondents
Frequency
Percentage
5
2.5
Super saver
0
0
Fun link
0
0
MTN biz plus
130
68.4
MTN zone
5
2.5
Tru talk
23
12.2
MTNpluse
27
14.2
Total
190
100
and
Source: field 2016
Status
Ferquency
Percentage(%)
Single
119
62.6
Married
49
25.7
Divorced
12
6.4
Widowed
10
5.3
The respective percentage of usage to the sample population
is presented on the right side of the table.
Total
190
100
Table 8: Customers Benefit From MTN
The above table shows the plan of customers who responded
to the questionnaire.5 are for family and friends tariff plan,
0 for super saver and funlink while 130 people go for MTN
zone while 23 for true talk and 27 use MTN pulse.
Source: field 2016
Response
Ferquancy
Percentage
The table shows the marital status of respondent.most of the
respondents were single 199,married people were 49,
divorced were 12 while widoweds were 10 in number.
Yes
90
47.3
No
100
52.6
Table 6: Designation of the Respondents.
Total
190
100
Designation
Frequency
Percentage
Source: field 2016
Student
92
48.5
Trader
68
35.7
Civil servant
22
11.5
The table shows that 90 respondent with 47.3 percent agree
to the fact that customer benefit from the marketing
strategies engage by MTN while 100 with the percentage of
52.6 disagree to this fact.
Others
8
4.3
TOTAL
190
100
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Table 9: Rate of MTN Charges
Table 12: MTN Availability of Services
Response
Frequency
Percentage(%)
Response
Frequency
Percentage
Highly
satisfactory
49
25.3
Highlysatisfactory
165
86.1
Satisfactory
22
11.6
Not satisfactory
90
47.3
Not satisfactory
3
1.5
Total
190
100
Total
190
100
Source field: 2016
Source field 2016
The above table shows 51 respondent present 26.4% of
highly satisfactory rate while 49 respondent present 25.3%
of satisfactory and 90 respondent with 47.3% shows not
satisfactory.
Table 10: MTN Coverage
From the table shows highly satisfactory respondent 165
presenting 86.1% agreed with the MTN availability of
services while satisfactory respondent 22 presenting 11.6%
and 3 not satisfactory while the percentage of 1
Table 13 Social Integration of MTN
Respondent
Frequency
Percentage
Highly
satisfactory
120
63.7
Satisfactory
70
36.1
Not satisfactory
O
-
Total
190
100
Source field 2016
Response
Frequency
Percentage
Highly
satisfactory
66
34.7
Satisfactory
71
37.3
Not satisfactory
53
27.8
Total
190
100
Source Field, 2016
Shows that 120 ( 63.7.7% ) highly satisfactory and 70
(36.1%) satisfactory and zero percentage respectively.
Table 11: Reference for MTN Services
Response
Frequency
Percentage
Yes
101
53.1
No
89
Total
190
The above table 13: indicate that the highly satisfactory
responded are 66 presenting, the percentage of 34.7% 71
satisfactory respondent presenting 37.7% while 53
responded not satisfy.
Table 14: Package Enjoyed From MTN
Respond
Frequency
Percency
46.0
A
Extra cool
78
41.5
100
B
Extra connect
47
24.7
C
Extra promo
49
25.7
Source field 2016
D
Extra profit
16
8.42
From the table above shows that 101 respondent presenting
53.1% preferMTNnetwork and 89 respondent while 46.0%
percent NO to MTN
Total
190
100
Source field 2016
According to the above table extra cool 78 respons with the
percentage of 41.5% while extra connect 47 respondent with
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percentage of 24.7% and the extra promo 49 presenting
25.7% while extra profit 16 respondent with percentage of
8.42% respectively
Therefore we reject the null hypothesis when states that, the
strategiesdoes not win customer in a competitive market
environment.
Table 15 MTN Rating Among Network
From the research findings it could be concluded that in a
competitive market environment, survival depends on the
use of competitive marketing strategies with appropriate
marketing mix variables such as product, price, promotion
and place, if the expected result are to be achieved in the
light of the set company’s marketing objectives.
Response
Frequency
Percentage
Yes
115
6.5
No
75
39.4
Total
190
100
Source field: 2016
Table 15: shows the MTN promotion is rating highly among
other network strategies who responded to the questionnaire
(115) presenting 6.5% all agreed yes while 75 people are
against, No with the percentage of 39.4%.
Table 16: Promotion Charges of MTN
Response
Frequency
Percentage
Yes
70
36.8
No
120
63.1
Total
190
100
The management of MTN Nigeria believed that appropriate
use of marketing mix variables (price, promotion, product,
and place) enhance the achievement of their company and
also majority of customers of MTN believed that marketing
strategies adopted by MTN such as product strategy
influence their choice and patronage of MTN product and
services.
Therefore, for any business organization to achieve the set
of company’s marketing objectives, appropriate use of
marketing mix variables must be adopted.
RECOMMENDATIONS:
Source field 2016
The above table show 70 respondent agreed Yes
representing 36.8% while No for 120 respondents with
63.1%, percentage respectively.
In view of the findings obtained from the survey of
customers within Maiduguri Metropolis, the researcher
made the following recommendations to enhance
effectiveness and efficiency operation of MTN Nigeria and
to assist them to gain more customers so as to prevail among
competitors. The researcher recommends:
1.
Table 8: Customers Benefits and Marketing Strategies
Response
8
11
Total
Yes
90
101
191
No
100
89
189
Total
190
190
380
2.
3.
Source field 2016
4.
DISCUSSION OF RESULTS
The calculation X2 = 432.29 while the critical table value at
0.05 significance level and 1 degree of freedom is 7.88 that
is x2 calculated value of 4.35.24 7×X2 table value.
5.
Dr (Mrs) Ruth Haruna Wazis1, Ijmei Volume 2 issue 09 Sept 2016
That management of MTN should always conduct
a customer value analysis to determine the benefit
of customer wants and how they perceive the
relative value of competitors.
For growth, survival and substantially, the
management of MTN should give cognizance to its
use of all marketing programmes to enhance
customer loyalty for their products and services.
That the management of MTN should try to extend
their services to all parts of the country in order to
reduce congestion.
That in order to compete effectively and profitably
with other competitors they should moderate their
tariffs.
That to prepare an effective marketing strategy,
MTN should study their competitors as well as
their potential customers, because company needs
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6.
7.
to identify competitors strategies, objectives,
strengths, weaknesses and reaction pattern.
That management of MTN should not over do the
emphasis on competitors, they should maintain a
good balance of consumer and competitors
monitoring.
That management of MTN should make customer
care services very effective.
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